IMF official praises fiscal squeeze despite ‘modest’ growth outlook

A senior official at the International Monetary Fund has warned that it foresees “quite modest” economic growth for Portugal in the coming years, while praising the contractionary fiscal policy of the Socialist government, which it said supports disinflation, and recommending that it continue on the path of reducing public indebtedness. In an interview with Lusa ahead of the government’s presentation of its draft state budget yesterday, the deputy director of the IMF fiscal affairs department, Ruud De Mooij, praised progress so far on the fiscal front and argued that Portugal should hold its course.